The factors were controllable and uncontrollable in this case,
Mr. Kim adopted hands-off prudence approach which allowed the mangers to make decisions with forbidden fully understanding the big brief by the time he realized and adopted the active approach it was too late.
The company had accumulated colossal debt oer the course of its overseas automotive expansion, which compromised the stability of its other operations, including shipbuilding. By July 1999, the company owed its creditors more than $50 billion. The companys perilous financial position was further exacerbated by the recession that hit South Korea in 1998, the countrys worst economic slump in nearly one-half a century. In spite of these warning signs, Mr. Kim did not forbear from his aggressive acquisition strategy.
While other chaebols had begun implementing measures to slow produce in the midst of the countrys fiscal crisis, Kim Woo Choong persevered with his ill-advised program, getting 14 new companies and increasing the companys debt by 40 share in 1998.
The financial Crises in Asian Market was out of Mr.Kims control i.e due to that crunch the all industries in Asia suffered a lot so did the Daewoo.
In April 1998, recently elect South Korean President Kim Dae-jung had pledged to be the first-class honours degree South Korean president to implement significant reclaim of the chaebol system. As the countrys most financially unstable chaebol, the Daewoo Group currently became a prime target for these reforms; this was beyond Mr.Kims control.
Shiraz Ahmed
Preston University Pakistan
Shiraz.nasa@gmail.comIf you indirect request to get a full essay, order it on our website: Ordercustompaper.com
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